Financial clarity, a review of stamp duty and more investment in education are among the top items on construction leaders’ budget wishlist, as they await tomorrow’s announcement from the Chancellor.
This autumn budget, the first under new Prime Minister Andy Burnham, is a particularly important one, with business leaders in various sectors eager to see renewed investment and growth.
One of the big issues for the construction industry is financial stability, giving companies the security to plan ahead, especially when handling multi-million pound developments and infrastructure projects.
Tim Tompkins, Director at Ipswich-based chartered surveyors Castons, said: “The biggest thing the industry needs from the budget is financial certainty.
“There is no shortage of construction work that needs doing, particularly across healthcare and the wider public estate, but clients and the supply chain need confidence that funding will be there beyond the next 12 months.
“A clear, deliverable pipeline will allow us and other businesses to recruit, train people and invest properly, and ultimately give the taxpayer better value for money.”
Tim added that the increases in staff costs employers have been facing is also an additional pressure on the industry.
He said: “The government also needs to be careful not to keep increasing the cost of employment while simultaneously asking the construction industry to deliver more for less.
“Skills remain one of our biggest constraints, so we should be making it easier for businesses to recruit, train and retain people.”
This emphasis on training is echoed by Deputy Chief Executive at Colchester Institute, Gary Horne MBE.
He said he would like to see increased investment in training the next generation of construction workers.
“In today’s money, the adult skills budget was £5.2 billion when John Healey was Adult Skills Minister in 2001,” he said. “And yet the current year budget is now a mere £1.3 billion.
“We really hope that the Chancellor uses this opportunity to invest further in skills training opportunities for people of all ages in order to secure employment and fulfil their potential.
“This would go some way towards helping the government achieve its commitment to recruit 100,000 more construction workers per year by the end of the parliament.”
Andy Laflin, Chair of the Suffolk Joint Construction Committee, said there were a number of issues he would like to see covered in this year’s budget.
“We welcome that the government has confirmed the first time buyer scheme is returning, and hopefully that will stimulate confidence in the housing market,” he said.
“I also think they could do more with stamp duty for non-first time buyers though and think they should review it.
“National Insurance contributions for employers were brought in at the last budget and have put significant pressures on companies so it would be good if there was a review to ensure it isn’t slowing growth.
“The Building Safety Levy too, which was part of the Building Safety Act, has not been well received by the construction industry.
“The Building Safety Act is an important piece of legislation but the levy is just another tax on the industry where many companies are already paying the CITB levy.
“There were calls from the National Federation of Builders to have an exemption for medium-sized sites, which sounds like a good idea.
“The levy is just another obstacle for would-be developers, an added cost, so a review of that would be welcomed.
“I think temporary relief for red diesel would also be welcomed by the sector. I realise it isn’t a particularly green way of thinking, but while diesel prices soar it could be a temporary way of helping the industry weather the storm.”
The budget is expected to be announced around 12.30pm Wednesday, October 28. Follow Construction Anglia throughout the afternoon for all the latest updates and views on how Mr Healey’s announcements could affect the construction industry in the East of England.
